About SEABOARD CORP

Seaboard Corporation operates as an agribusiness and transportation company worldwide. It operates through six segments: Pork, Commodity Trading and Milling (CT&M), Marine, Sugar and Alcohol, Power, and Turkey. The Pork segment produces and sells fresh and frozen pork products to further processors, foodservice operators, grocery stores, and distributors; hogs; and biodiesel. The CT&M segment sources, transports, and markets wheat, corn, soybeans, soybean meal, and other commodities; and produces wheat flour, maize meal, manufactured feed, and oilseed crush commodities. The Marine segment provides cargo shipping services in the United States, as well as in 26 countries in the Caribbean, and Central and South America; dry, refrigerated, and specialized containers, as well as other related equipment; and operates a terminal and an off-port warehouse for cargo consolidation and temporary storage. As of December 31, 2021, this segment operated through a fleet of 20 chartered and 4 owned vessels.

The Sugar and Alcohol segment produces and sells sugar and alcohol; and generates and sells energy through its 51-megawatt cogeneration power plant that is fueled by sugarcane by-products, natural gas, and other biomass. The Power segment operates as an independent power producer that generates electricity for the power grid in the Dominican Republic. The Turkey segment produces and processes organic turkey products to retail stores, foodservice outlets, and industrial entities, as well as exports products to Mexico and internationally. The company also processes and sells jalapeño peppers. Seaboard Corporation was founded in 1918 and is headquartered in Merriam, Kansas.

SEB operates in the Wholesale Trade | Wholesale | headquartered in Shawnee Mission, Kansas | approximately 13,000 employees | led by CEO Robert L. Steer.

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## Investment Thesis SEABOARD CORP /DE/ (SEB) currently ranks **#15** in our coverage universe of 3,571 U.S.-listed equities, with a composite score of **79.9/100**. This places the stock in our **"Strong Buy"** category based on our proprietary six-factor quantitative model. The bull case rests on three pillars: exceptional profitability (Quality score: 39/100), favorable market dynamics (Momentum: 93/100), and reasonable valuation relative to quality (Value: 84/100). Our model, built on 46 peer-reviewed academic studies, identifies these factor combinations as historically predictive of outperformance. The central question for investors: **Is SEB's quality premium justified by its growth trajectory, or has the market already priced in perfection?** --- ## Company Overview SEABOARD CORP /DE/ operates in the **Consumer Staples** sector and has demonstrated solid revenue growth of 14.5% over the trailing twelve months. The company converts 4.3% of revenue into net income, a margin profile with room for improvement. At $3.6B, SEB is a mid-cap company with potential for significant growth but also higher volatility. --- ## Our Six-Factor Analysis Our proprietary model evaluates every stock across six factors, each backed by peer-reviewed academic research. Here's how SEB scores: ### Quality Score: 39/100 ★★ **What we measure:** Return on equity, return on assets, gross margin, net margin, earnings consistency, and accruals quality. SEB generates a return on equity of **6.8%**, below average and an area for management focus. Gross margin of **7.8%** reflects competitive industry dynamics. Net margin of **4.3%** leaves limited room for margin compression. **Academic evidence:** Research by Novy-Marx (2013) demonstrates that quality stocks outperform by 4-6% annually over long periods, even after controlling for market beta. --- ### Value Score: 84/100 ★★★★★ **What we measure:** P/E, P/B, P/S, EV/EBITDA, and free cash flow yield relative to sector and historical norms. SEB trades at **9.05x earnings**, a significant discount to the market, suggesting either value opportunity or fundamental concerns. Price-to-book of **0.73x** suggests the stock trades close to tangible asset value. **Academic evidence:** Fama and French (1992) established that value stocks (low P/B, P/E) outperform growth stocks by 3-5% annually, though this premium has compressed in recent years. --- ### Momentum Score: 93/100 ★★★★★ **What we measure:** 12-month price momentum, revenue growth acceleration, earnings surprise frequency, and relative strength. Revenue growth of **14.5%** shows solid business momentum. Our timing model assigns a score of **56.3625/100** with a **Favorable** signal, suggesting neutral timing. **Academic evidence:** Jegadeesh and Titman (1993) documented that stocks with strong 6-12 month momentum continue to outperform over the subsequent 3-12 months, generating 1%+ monthly alpha. --- ### Investment Score: 99/100 ★★★★★ **What we measure:** Asset growth, capital expenditure intensity, acquisition activity, and capital allocation discipline. An investment score of 99/100 suggests SEB is deploying capital effectively to drive future growth. **Academic evidence:** Titman, Wei, and Xie (2004) found that companies with high asset growth subsequently underperform, suggesting capital discipline matters. --- ### Stability Score: 63/100 ★★★★ **What we measure:** Beta, earnings volatility, balance sheet strength, debt levels, and cash flow consistency. Beta of **0.14** indicates lower volatility than the market. Debt-to-equity of **0.3%** reflects a conservative capital structure with ample financial flexibility. **Academic evidence:** Low-volatility stocks have historically outperformed high-volatility stocks on a risk-adjusted basis—a phenomenon known as the "low-volatility anomaly" (Baker, Bradley, Wurgler 2011). --- ### Short Interest Score: 98/100 ★★★★★ **What we measure:** Days to cover, short interest as percentage of float, and short interest trend. A short interest score of 98/100 indicates limited bearish positioning. --- ## Economic Moat Assessment Based on our analysis of profitability metrics, competitive positioning, and sustainability of returns, we assess SEB's economic moat as follows:

Moat Type	None
Moat Width	Narrow
Uncertainty	Medium

--- ## Fair Value Estimate We employ a reverse discounted cash flow methodology to estimate fair value, working backward from the current price to determine what growth assumptions are implied. ### Three-Scenario Analysis

Scenario	Implied Fair Value	Upside/Downside	Assumptions
Bear	$6.0B	+65.8%	Assumes 8% 5-year growth, 18x terminal P/E, 12% discount rate
Base	$10.9B	+202.3%	Assumes 12% 5-year growth, 25x terminal P/E, 10% discount rate
Bull	$18.9B	+425.7%	Assumes 18% 5-year growth, 32x terminal P/E, 9% discount rate

### Probability-Weighted Expected Return Assuming 20% bear, 50% base, and 30% bull probability weights: **Expected Return: 242.0%** --- ## Peer Comparison How does SEB stack up against sector peers?

Company	BCR Score	P/E	ROE	Net Margin
SEB (This Stock)	79.9	9.05	6.8%	4.3%
ITRN	80.4	11.40	30.4%	16.8%
GWW	80.1	26.35	32.2%	6.9%
FERG	79.9	24.98	39.4%	7.0%
MNST	79.7	38.06	27.7%	23.9%
DPZ	79.4	26.61	-17.6%	12.2%

SEB's score is competitive with sector peers. --- ## Risk Factors Every investment carries risk. Here are the key risks for SEB: ### Valuation Risk ✅ LOW The current valuation provides reasonable downside protection. ### Competitive Risk ⚡ MODERATE Competitive dynamics in this sector require ongoing investment and strategic adaptation. ### Execution Risk ⚡ MODERATE The company has demonstrated reasonable operational stability. ### Macro Risk ⚡ MODERATE All equities are subject to macroeconomic conditions including interest rates, inflation, and economic growth. A recession could impact earnings regardless of company-specific quality. --- ## Financial Deep Dive ### Income Statement Analysis **Gross Margin: 7.8%** — Compressed margins suggest competitive industry dynamics. **Operating Margin: 3.3%** — Room for operational improvement. **Net Margin: 4.3%** — Limited profit conversion. ### Balance Sheet Analysis **Debt-to-Equity: 0.3%** — Conservative leverage with ample financial flexibility. **Return on Equity: 6.8%** — Below-average ROE suggests capital efficiency concerns. ### Cash Flow Indicators **Revenue Growth: 14.5%** — Steady growth reflecting mature market position. --- ## Investment Decision Framework ### Who Should Buy SEB? ✅ **Long-term investors** seeking quality exposure ✅ **Factor investors** targeting quality and momentum ✅ **Portfolio builders** needing Consumer Staples sector exposure ### Who Should Avoid SEB? ❌ **Deep value investors** seeking bargain prices ❌ **Short-term traders** seeking high volatility ### Position Sizing Recommendation Based on our factor profile and risk assessment: | Portfolio Size | Suggested SEB Weight | |----------------|---------------------------| | $10,000 | $800 - $1,200 | | $100,000 | $8,000 - $12,000 | | $1,000,000 | $80,000 - $120,000 | --- ## The Bottom Line SEABOARD CORP /DE/ represents **a compelling investment opportunity** based on our six-factor quantitative analysis. The company's quality metrics have room for improvement, while its valuation offers attractive entry point. Our fair value analysis suggests **upside potential of 202%** under base-case assumptions, with probability-weighted expected returns of **242%**. We recommend accumulation, particularly on any pullbacks that improve the risk-reward profile. ---

--- ## Methodology Disclosure This analysis is based on the Blank Capital Research six-factor quantitative model, which evaluates securities across Quality, Value, Momentum, Investment, Stability, and Short Interest factors. Factor weights are derived from 46 peer-reviewed academic studies and calibrated to current market conditions. Our fair value estimates employ reverse discounted cash flow analysis, working backward from market price to implied growth assumptions. This methodology is inherently uncertain and should be considered as one input among many in investment decisions. --- *This report was generated on Monday, February 16, 2026. The analysis reflects data as of that date. Past performance does not guarantee future results. This is not investment advice. Blank Capital Research may hold positions in securities mentioned.*